Canada securities watchdog eases burden on young companies

TORONTO, April 9 (Reuters) - Canadian securities regulators
issued rule changes on Thursday meant to ease the burdens
imposed on young companies while also aiding investors in such
ventures by strengthening corporate governance rules.

Under the new rules, venture issuers may produce a
less-detailed "quarterly highlights" document than regular
issuers, can disclose less about executive compensation, and not
mention stakes they take in other companies.

A venture issuer is one not listed on the Toronto Stock
Exchange, a U.S. marketplace or a marketplace outside of the two
countries other than London's Alternative Investment Market and
the PLUS Markets Group's PLUS markets.

Such companies will also have to form an audit committee of
at least three members, the majority of whom are independent of
the company, the Canadian Securities Administrators, an umbrella
group which includes Canada's ten provincial and three
territorial regulators, said in a statement. A similar rule is
already in place for those on the TSX's Venture exchange.

The rules are expected to come into force on June 30,
pending ministerial approvals in each region.